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The key to smart investing is not reacting to the headlines of what's already happened but looking six months ahead and predicting what's going to happen, Jim Cramer told the viewers of his "Mad Money" TV show Friday.

Cramer reminded viewers that the stock market always looks into the future. He said it's easy to say things will get worse when they're already bad, but it's far harder to predict a recovery when the markets are at their lows.

Cramer then offered his predictions for the second half of 2009. First off, he said the turn in the housing market is upon us, and that means fewer foreclosures and more profits for banks like

Wells Fargo

(WFC) - Get Report

, a stock which Cramer owns for his charitable trust,

Action Alerts PLUS. He also recommended Washington, DC area homebuilder,


(NVR) - Get Report

as a housing beneficiary.

Cramer said the trucking industry is also at record lows, and he feels companies like


(PCAR) - Get Report

should benefit in the second half.

He also reiterated the multi-year move in the smartphone market, saying that


(AAPL) - Get Report

and the smartphone component makers will also prosper.

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Finally, Cramer predicted windfalls for the healthcare and natural gas sectors, as they too will recover during the second half of this year.

He said that investors need to take a chance and make predictions if they expect to get ahead, and that's why he's always looking toward the future.

Prescription for Profits

Cramer spoke with

Allscripts-Misys Healthcare

(MDRX) - Get Report

CEO Glen Tullman to see if this company still has the prescription for profits after a 200% run since Cramer last recommended the stock in July of 2008.

"We're just getting started," said Tullman when asked about Allscripts' business outlook. He said that with only one out of three doctors using the company's software, Allscripts has a ton of opportunity ahead of it. Tullman said the company just recently grew its distribution network five times and is reaping the rewards of trends towards healthcare reform.

When asked about the company's exposure to the cash-strapped hospital sector, Tullman said that fortunately 80% of all healthcare is provided outside of hospitals, so Allscripts is not significantly affected. He said that in many cases hospitals are postponing larger projects due to financial concerns, but they're still moving forward with investments in technology like Allscripts offers.

Cramer said he's not backing away from Allscripts and reiterated his buy on the stock.

Speculation Friday

For "Speculation Friday," Cramer recommended oil and gas driller

Continental Resources

(CLR) - Get Report

, which has been left for dead by Wall Street.

Cramer last recommended Continental on May 9, 2008 it was at $53. The stock them peaked at $83 a share before falling with the markets to a low of $12. Since then, shares have recovered to $27 a share, and Cramer said the time is right to pull the trigger.

According to Cramer, Continental is a much better company now than it was a year ago, yet it trades at half the price. Continental now drills wells 50% faster than it did last year, in just 30 days on average versus 45 days in 2008. The company is also better run, and none of its $500 million in debt is coming due anytime soon.

Cramer said Continental is also very well run, with management reducing the company's rig count from 32 rigs to just four at the lows. Two-thirds of the company's production is oil, not gas, and 100% of that production is unhedged, meaning it can profit from rising crude prices.

Cramer said Continental could be a potential takeover target given its substantial reserves. With two ways to win, he said investors need to consider this stock.

Missed Opportunity

In his "Outrage of the Day," Cramer sounded off at the entire natural gas industry for completely missing out on the country's push towards alternative energy. He said despite natural gas being the logical choice as a bridge fuel for the country, both Congress and Obama have shunned the clean burning fuel.

Cramer said he's not sure who to blame for the Obama administration endorsing practically every other fuel other than natural gas, but it's clear that true alternative energy is 30 to 40 years away, and that natural gas, which is cheap, plentiful and clean is the bridge fuel the country needs.

Cramer said he's just shocked that natural gas industry has seemingly blown its chance for prosperity.

Lightning Round

Cramer was bullish on

Jabil Circuit

(JBL) - Get Report


First Solar

(FSLR) - Get Report



(AZN) - Get Report


Occidental Petroleum

(OXY) - Get Report


Advanced Micro Devices

(AMD) - Get Report


He was bearish on

MGM Mirage

(MGM) - Get Report






(RMBS) - Get Report


Check out the latest edition of

"Cramer's Take onTop-Searched Stocks" on Stockpickr.

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At the time of publication, Cramer was long Wells Fargo.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.